PROBLEMS OF REVENUE SOURCES IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA (A CASE STUDY OF YAGBA WEST LOCAL GOVERNMENT AREA OF KOGI STATE)

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PROBLEMS OF REVENUE SOURCES IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA (A CASE STUDY OF YAGBA WEST LOCAL GOVERNMENT AREA OF KOGI STATE)

TABLE OF CONTENTS

Title page……………………………………………………………………………..i

Certification………………………………………………………………………….ii

Dedication……………………………………………………………………………iii

Acknowledgement…………………………………………………………………..iv

Table of Contents……………………………………………………………………v

CHAPTER ONE

Introduction…………………………………………………………………….1

Aims and Objectives……………………………………………………………

Scope of Study…………………………………………………

Significance of the Study…………………………

Research Methodology……………………………….

Literature Review………………………………………………………………

Definition of Key Concepts…………………………………………………

CHAPTER TWO: Historical Antecedents of Yagba West LGA

2.1 Evolution of Local Governments in Nigeria…………………………………

2.2 Historical Background of Yagba West Local Government Area…………..

2.3 The 1976 Local Government Reforms………………

CHAPTER THREE: Revenue Generation in Yagba West LGA

3.1 The Structure of Yagba West Local Area……………………………………….17

3.2 Revenue Generation in Yagba West Local Government……………….18

3.2.1 Licenses…………………………………………………………………………19

3.2.2 Fines and Court…………………………………………………………………19

3.2.3 Gifts and Grants…………………………………………………………………19

3.2.4 Taxes…………………………………………………………………………….19

3.3 Problems of Revenue Generation in Yagba West Local Government…………………20

3.4 Problems of Yagba West Local Government Administration………..21

CHAPTER FOUR: Prospects of Funding in Yagba West Local Government

4.1 Federal Allocation and Management………………………………………………24

4.2 Prospects of Revenue Generation………………………………………………….26

4.3 Agricultural Development in Yagba West Local Government Area……29

4.4 Industrial Growth of Yagba West Local Government Area…………….29

4.5 Women and Youth Development…………………………………………………..30

Conclusion………………………………………………………………………….30

Bibliography……………………………………………………………………33

CHAPTER ONE

INTRODUCTION

1.0 BACK GROUND OF THE STUDY

Revenue has played an important role in the development of the local government administration in Nigeria. According to Wikipedia, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers1. Nigeria as a sovereign nation operating a federal system of government that is, it consists of the Federal Government, State Government and Local Government councils. Onwo (1992) observed that each level of the three tiers of government derives its powers not from the magnanimity of the central government but from the constitution; each level of government has defined responsibilities2. The evolution of local government in Nigeria has undergone a lot of changes. These are all geared towards making the local government a system that could serve the purposes for which they are created; grass root development. Nigeria was governed through the instrumentality of their traditional political institutions. These institutions were anchored on the people’s habits, thought, prestige and custom which are adapted to meet the new conditions for general development of their areas.

In 1986, the Babangida Administration made local government an effective third tier of the federal system, introduced reforms aimed at enhancing their autonomy and strengthening their administrative framework. All elected councilors constitute the legislative arm of the local government while the executive arm consists of the chairman, vice-chairman and supervisory councilors. The local government witnessed several reforms between 1991 and 1992. The reforms show a fundamental implication for local government administration, especially in regard to the reforms to the local government service. A total of 589 local government areas were in existence as of 1991.In the local government reforms, there was the establishment of the executive chairmanship of the local government with functions firmly entrenched in schedule for the constitution. Yagba west local government area was created on August 27th 1991 following the creation of additional states by the then president General Babangida Badamosi. Yagba West district has been in existence long ago since about 1947 when the traditional headship of Olu Okeri M.D. Dada was referred to as the AUTHORITY till late seventies3. When the military took over in 1972, efforts were made to restructure the districts. Meanwhile, the then Governor Bamgboye of Kwara state divided what was Yagba district into two called Egbe ( Egbe town council) and the west towns and villages( Area council)5. This comprises Odo-Ere, Odo-Eri, Ejiba, Odo-Ara, Iyamerin, Omi, Oga, Okunran, Okoloke, Okere, and Isanlu essa. It did not go well with the area council, as it was viewed as oppression. In the early eighties Hon Adebayo of Oga moved in the then Kwara house of assembly for the creation of Akumejo local government area integrating both Egbe and Area council. This was approved in 1982 and Akumejo local government area was created with its headquarters at Odo-Ere. These local governments, with many others in the country, wereshort lived.

Thus, Akumejo local government area was abrogated along with others. But duringthe creation of the local government areas across the country, Yagba west local government area was created out of “Ajiwan” comprising all the communities both at Area and Egbe councils, with the headquarters at Odo-Ere. In 1991a reformed Kogi state from formerKabba provinces was created out of Kwara and Benue states. The numbers of local governments in Okun land which comprised the former Kabbadivision rose from 2 to 4. The two Local Governments in Yagba referred to their colonial names of Yagba East and Yagba West local governments which were changed in 1982 to Akumejo and Oyi local governments respectively.

From oral history, Odo-ere has been the central meeting point at Okuta-dudu for the people of Yagba west, before and during the colonial era. The Odo-Ere customary court was the only native court in the early fifties that was presided over by all the Obas- Olu –Okeri, Elere, Eleri, Elegbe and Elejiba,thus establishing the centrality to other Yagba west communities. Odo-Ere has since then been the District headquarters.

In Yagba West, the Area Council and the Egbe Town Council were merged into West Yagba joint council under the chairmanship of Oba J.I. Eledere. Aside from oral history, the first Oba Yagba, after an extensive deliberation among the Yagba people, it was agreed that the first Oba must come from Odo-Ere. Furthermore, all towns and villages in Yagba West, Egbe inclusive,attended crucial meetings at Okuta dudu, Odo-Ere. These informed the choice of the town to be the headquarters during the Akumejo local government period of existence and subsequently that of Yagba West Local Government Area.

Change was difficult to accept by the communities.Some felt that such headquarters would be located in their own towns to boost the socio-economic and political status of their community. Whilst the Area Council was scattered into different communities. About 14 communities were scattered all over the local government total.The Egbe Town Council came together at one place, portraying them as a large community because their villages were merged together to form an enlarged Egbe. It is with this impression that Egbe people agitated for the headquarters while other communities had less agitation for this. Some Egbe people believed their community is larger with many secondary schools, hospitals economic buoyance and other social amenities to justify their agitation.

1.1 AIMS AND OBJECTIVES

The purpose of this research is to critically analyze and appraise the problems of revenue sources in Yagba West Local Government Area as a case study. The specific objectives are:

1. To identify major problems of revenue sources in Yagba West Local Government Area.

2. To examine possible avenues for generating local government revenue service.

3. To find out whether or not the revenue is adequate for the council’s expenditure.

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